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Multinational Companies, Technology Spillovers and Plant Survival

In: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT

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  • Holger Görg
  • Eric Strobl

Abstract

How does the presence of multinational companies affect plant swvival in the host country? We postulate that multinational companies can impact positively on plant swvival through technology spillovers. We examine the nature of the effect of multinationals using a Cox proportional hazard model, which we estimate using plant-level data for Irish manufacturing industries. Our results show that the presence of multinationals has a life-enhancing effect only on indigenous plants in high-tech industries, suggesting the presence of technology spillovers. In contrast, multinationals compete with each other in low-tech sectors in the host country.

Suggested Citation

  • Holger Görg & Eric Strobl, 2016. "Multinational Companies, Technology Spillovers and Plant Survival," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 16, pages 289-303, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789814749237_0016
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    More about this item

    Keywords

    Multinational Enterprises; Foreign Direct Investment; Spillovers; Development; Host Country;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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